City projected to end year with $439 million budget surplus despite slowed tax earnings

State Controller Thomas DiNapoli released the report announcing the surplus for the 2017 fiscal year. (Mike Groll/AP)

The city is set to end up with a budget surplus this year despite a slowdown in tax revenue, according to a report released by state Controller Tom DiNapoli Tuesday.

A surplus of $439 million is projected for the 2017 fiscal year, which goes through June.

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That's despite a lag in tax collections, which are expected to grow less than 2% in 2017. Tax revenue had grown 3.2% in 2016, which itself marked a slowdown from an average annual rate of 6.9% from 2011 through 2015.

"The city's economy is strong, but job growth and tax collections in the near future are unlikely to be as robust as they have been in recent years," DiNapoli said.

Revenue from taxes other than property taxes is expected to fall by 0.5% this year, the first decline since 2010.

The city is facing a $2.2 billion budget gap in 2018, down from $2.8 billion in earlier projections, and the deficit is pegged at $2.9 billion in 2019 and $2.4 billion in 2020.